Spain : new Court’s decision on the two-salary-scale clause

Facts. The Supreme Court disallowed Repsol’s two-scale-salary scheme and ordered the company to pay the 6.000 employees harmed by wage differentials, i.e. a total cost of about €24 million. The Supreme Court took action in response to the arguments of the USO union (Union sindical obrera), which had denounced the fact that people employed by Repsol after September 30, 1994 had a lower seniority benefit than those who entered the company earlier. They had a clause which allowed them to get an increased seniority benefit every three years. On the other hand, people who had been hired after September 30, 1994 only got an increased seniority benefit every five years. The court gave satisfaction to the trade union and Repsol will pay for the wage differentials accumulated since May 2004, when the two-salary-scale clause came into effect. In this case, the Supreme Court applied the Constitutional Court’s theory which states that “in the presence of discrimination, the most advantageous treatment prevails, so that the inequality of treatment can be repaired by canceling the less advantageous provision and by applying the most advantageous treatment to the group discriminated against.” 
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the trade union and Repsol will pay for the wage differentials accumulated since May 2004, when the two-salary-scale clause came into effect. In this case, the Supreme Court applied the Constitutional Court’s theory which states that “in the presence of discrimination, the most advantageous treatment prevails, so that the inequality of treatment can be repaired by canceling the less advantageous provision and by applying the most advantageous treatment to the group discriminated against.”

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